13.08.202516:00:31UTC+00European Stocks Close Sharply Higher

European stocks experienced a significant upswing on Wednesday, reaching their highest point in two weeks. This rise was propelled by expectations of reduced interest rates in the United States and the potential for decreased energy prices, fostering a more favorable growth environment within the eurozone. The STOXX 50 advanced by 1% to close at 5,390, while the STOXX 600 increased by 0.6% to finish at 551.

Key sectors, including banking, luxury, and technology, were among the top performers of the session. Notable gains were observed in shares of Intesa Sanpaolo, LVMH, Kering, SAP, and Prosus, with increases ranging from 1.5% to 4%. The healthcare sector also saw a substantial rise, recovering from earlier volatility in the month, with Sanofi and Bayer appreciating by 2% and 3.5%, respectively. AstraZeneca, although outside the Eurozone index, surged by 3%.

Conversely, oil producers saw a decline, highlighted by a 1% fall in TotalEnergies' stock, following the International Energy Agency's (IEA) report on global surpluses and the potential easing of tensions in the Russia-Ukraine conflict. This latter development comes in anticipation of the upcoming summit between U.S. President Trump and Russian President Putin.